SDST3901 Life contingencies I (6 credits) Academic Year 2025
Offering Department SCDS (Department of Statistics and Actuarial Science) Quota ---
Course Co-ordinator Dr K P Wat, SCDS (Department of Statistics and Actuarial Science) < watkp@hku.hk >
Teachers Involved (Dr K P Wat,Statistics & Actuarial Science)
Course Objectives The major objectives of this course are to integrate life contingencies into a full probabilistic framework.  The time-until-death random variable is the basic building block by which models for life insurances, designed to reduce the financial impact of the random event of untimely death, are developed.  This course introduces the concepts of life contingencies and the basic mathematical skills for modelling life insurance products.
Course Contents & Topics Key topics include: survival distributions; life table functions; select and ultimate tables; life insurance models; life annuity models; loss-at-issue random variable; benefit premiums.
Course Learning Outcomes
On successful completion of this course, students should be able to:

CLO 1 calculate the expected values, variances, probabilities, and percentiles for survival-time random variables
CLO 2 define the continuous survival-time random variable that arises from the discrete survival-time random variable using some assumptions for fractional ages
CLO 3 define present-value-of-benefit random variables defined on survival-time random variables
CLO 4 define and calculate the expected values, variances and probabilities for present-value-of-benefit random variables, present-value-of-loss-at-issue random variables, and present-value-of-loss random variables
CLO 5 calculate benefit premiums for life insurances and annuities
Pre-requisites
(and Co-requisites and
Impermissible combinations)		 (Pass in SDST2602 and SDST3615) or
(Pass in SDST2902 and (Pass in SDST3902 or already enrolled in this course)) or
(Pass in SDST2602 and SDST2902)
Only for students admitted in 2025 and thereafter.
Course Status with Related Major/Minor /Professional Core 2U000C00 Course not offered under any Major/Minor/Professional core
2024 BSc in Actuarial Science ( Core/Compulsory )
2024 Minor in Actuarial Studies ( Disciplinary Elective )
2023 BSc in Actuarial Science ( Core/Compulsory )
2023 Minor in Actuarial Studies ( Disciplinary Elective )
2022 BSc in Actuarial Science ( Core/Compulsory )
2022 Minor in Actuarial Studies ( Disciplinary Elective )
2021 BSc in Actuarial Science ( Core/Compulsory )
2021 Minor in Actuarial Studies ( Disciplinary Elective )
Course to PLO Mapping 2024 BSc in Actuarial Science < PLO 1,2,3,4,5 >
2023 BSc in Actuarial Science < PLO 1,2,3,4,5 >
2022 BSc in Actuarial Science < PLO 1,2,3,4,5 >
2021 BSc in Actuarial Science < PLO 1,2,3,4,5 >
Offer in 2025 - 2026 Y        1st sem    Examination Dec     
Offer in 2026 - 2027 Y
Course Grade A+ to F
Grade Descriptors
A Demonstrate thorough mastery at an advanced level of extensive knowledge and skills required for attaining all the course learning outcomes. Show strong analytical and critical abilities and logical thinking, with evidence of original thought, and ability to apply knowledge to a wide range of complex, familiar and unfamiliar situations. Apply highly effective organizational and presentational skills.
B Demonstrate substantial command of a broad range of knowledge and skills required for attaining at least most of the course learning outcomes. Show evidence of analytical and critical abilities and logical thinking, and ability to apply knowledge to familiar and some unfamiliar situations. Apply effective organizational and presentational skills.
C Demonstrate general but incomplete command of knowledge and skills required for attaining most of the course learning outcomes. Show evidence of some analytical and critical abilities and logical thinking, and ability to apply knowledge to most familiar situations. Apply moderately effective organizational and presentational skills.
D Demonstrate partial but limited command of knowledge and skills required for attaining some of the course learning outcomes. Show evidence of some coherent and logical thinking, but with limited analytical and critical abilities. Show limited ability to apply knowledge to solve problems. Apply limited or barely effective organizational and presentational skills.
Fail Demonstrate little or no evidence of command of knowledge and skills required for attaining the course learning outcomes. Lack of analytical and critical abilities, logical and coherent thinking. Show very little or no ability to apply knowledge to solve problems. Organization and presentational skills are minimally effective or ineffective.
Communication-intensive Course N
Course Type Lecture-based course
Course Teaching
& Learning Activities
Activities Details No. of Hours
Lectures 36.0
Tutorials 12.0
Reading / Self study 100.0
Assessment Methods
and Weighting
Methods Details Weighting in final
course grade (%)		 Assessment Methods
to CLO Mapping
Assignments Coursework (assignments, tutorials, class test(s) and participation) 40.0 1,2,3,4,5
Examination One 3-hour written examination 60.0 1,2,3,4,5
Required/recommended reading
and online materials		 Bowers, N. L., Gerber, H. U., Hickman, J. C., Jones, D. A., and Nesbitt, C. J. (1997). Actuarial Mathematics (2nd Edition). The Society of Actuaries.
Dickson, D. C. M., Hardy, M. R., and Waters, H. R. (2020). Actuarial Mathematics for Life Contingent Risks (3rd Edition). Cambridge University Press.
Course Website http://moodle.hku.hk
Additional Course Information NIL